MUFG Sets Up New Fund for Japanese Movies, Aiming to Inject Some Hollywood-level Cash into Industry
Yomiuri Shimbun file photo
The head office of Mitsubishi UFJ Financial Group Inc., in Chiyoda Ward, Tokyo
Mitsubishi UFJ Financial Group Inc. has announced a new fund that it has established for investing in film production.
Kodansha Ltd. and Credeus Inc., a movie production company known for its Kingdom series, have together set up a new company that will receive contributions from the fund. They will also seek funds from outside investors.
Japan's film projects are viewed as less capable of raising funds than their overseas peers. The MUFG and its partners aim to attract money into Japanese projects to make movies that are internationally competitive.
For this venture, Mitsubishi UFJ Trust and Banking Corp. is putting together and managing the fund and will also seek out investors. MUFG Bank is contributing ¥6.6 billion and in return will receive part of box-office sales. The total size of the fund has not yet been decided.
Generally, Japanese movies are made under the 'production committee method,' in which the companies involved each put up some of the money needed.
If the new project is successful, it would broaden the range of options for procuring funds to include investors and financial institutions.
In the United States, the movie industry can rely on huge sums of money from investors. This has led to the production of many movies that have become global hits.
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